Pursuant to a legislative requirement, GAO conducted an audit of the agencywide financial statements of the American Battle Monuments Commission (ABMC) for fiscal years 1999 and 1998.

GAO noted that: (1) ABMC consolidating financial statements as of and for the fiscal year ended September 30, 1999, and comparative consolidated totals as of and for the fiscal year ended September 30, 1998, are presented fairly in conformity with generally accepted accounting principles; (2) ABMC had effective internal control over financial reporting (including safeguarding assets) and compliance with laws and regulations as of September 30, 1999; (3) however, there was one reportable condition concerning internal controls over information technology systems; (4) GAO did not consider this condition to be a material weakness; and (5) there were no reportable instances of noncompliance with selected provisions of laws and regulations tested.